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MTUC Urges Overhaul of Wage Structure to Include Skill and Experience-Based Pay

Kuala lumpur: The Malaysian Trades Union Congress (MTUC) is advocating for an overhaul of the minimum wage structure to include middle-income workers, ensuring that salary increments reflect their skills, education, and work experience.

According to BERNAMA News Agency, MTUC's secretary-general, Kamarul Baharin Mansor, emphasized that this move is crucial to addressing skills mismatch issues, attracting quality talent to companies, and supporting both productivity and wage growth. He highlighted the Human Resources Minister Datuk R. Ramanan's recent announcement about the government's review of the minimum wage rate as a positive step forward for workers.

Kamarul Baharin pointed out that under the National Wages Consultative Act, the minimum wage rate is due for a review every two years, with the current review period nearing its end in just five months. He stressed the importance of announcing the new rate soon to avoid putting additional financial pressure on workers amidst rising costs of goods. He suggested that a decent living wage of RM3,100 per month should be considered as a reference for the new minimum wage, considering the growing expenses related to living costs, inflation, food prices, housing, transportation, and other essentials.

He also noted that despite having up to 10 years of service, some workers continue to earn as low as RM1,700, highlighting the urgent need for a structured wage system. Furthermore, Kamarul Baharin stated that MTUC is prepared to collaborate with the government through the National Wages Consultative Council (MPGN), offering insights and perspectives on the new minimum wage rate.

Last Tuesday, the Human Resources Minister, Ramanan, announced that the current RM1,700 monthly minimum wage rate is under review to determine whether it should be maintained or increased.

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